Research Journal of Economics

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Real Exchange Rate and the Size of the Country in Selected Oil Exporting Countries

This paper empirically evaluates the impact caused on the real exchange rate of the selected 51 oil exporting countries with respect to their size from the period of 2001-2010. Regression model is used for the analysis with respect to the GDP percentage on the REER, foreign income and the dummy variable of exchange rate regimes. The results indicate that the size of the country does not have an asymptotic relationship with the real exchange rate and that country size absorption effect does not contribute towards mitigation of the Dutch Disease effect subsequent to the oil boom.

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